Question
The following data have been estimated for two mutually exclusive investment alternatives, A and B. Incremental ROR analysis was perform to select more desirable alternative.
The following data have been estimated for two mutually exclusive investment alternatives, A and B. Incremental ROR analysis was perform to select more desirable alternative. If MARR = 12%, what is the value of incremental cash flow for year 3?
| A | B | |
| Capital Investment | -8000 | -13000 |
| Annual Cash Flow | -3500 | -1600 |
| Salvage Value | 0 | 2,000 |
| Useful life | 5 | 5 |
Group of answer choices
-$1900
+$1900
-$3,500
-$1,900
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Security Of Computerisation In Accounting And Auditing System
Authors: M.S. Baghel
1st Edition
8178801132, 978-8178801131
